At the Acumatica Summit 2018 held January 28th to February 2nd in Nashville, the importance of Corporate Social Responsibility for growing companies was introduced. Corporate Social Responsibility (CSR) is a broad term used to characterize the efforts made by a company to improve society. CSR is typically viewed in 4 realms: Environment, Philanthropy, Ethical Labor Practices and Volunteering.
During the Acumatica Summit, Acumatica highlighted their partnership with Made in A Free World. Made in A Free World is a tool for businesses to have supply chain transparency. Working alongside the United States State Department, Made in A Free World was able to build a database to help organizations and institutions protect their sourcing from human rights abuse such as child labor. Made in A Free World also exhibited how using a modern ERP solution (Acumatica) helped vendors and consumers collaborate to better their supply chain.
As a business, it may seem extremely risky to face social issues, but you can see major benefits (“More Risk, More Return” idea). Laurence Fink, the CEO of Black Rock, said: “To prosper over time, every company must not only deliver financial performance but also show how it makes a positive contribution to society.” Fink’s idea is that your financial success should be equivalent to your impact on society. Honestly, these should be hand in hand. Here are some factors that lead to corporate gains from having a CSR in place.
- BRAND TRUST --- two out every three customers tend to trust the brand.
- WILLINGNESS TO PAY A PREMIUM --- 66% of consumers are willing to pay a premium for sustainable goods.
- AGE MATTERS --- 73% of Millennials are willing to pay a premium and build everlasting loyalty with a socially responsible company.
- HEALTH AND WELLNESS --- 59% of customers rather purchase products that have health and wellness benefits.
- THE ENVIRONMENT --- 65% of total retail sales were made by brands who are committed to social or environmental value.
Are you ready to build your Corporate Social Responsibility charter?
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